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Xendit, an Indonesian fintech, has raised $150 million in new investment headed by Tiger Global

In Southeast Asia’s increasing roster of unicorns, there’s a newcomer. Xendit, a Jakarta-based company that specialises in digital payment infrastructure but also offers other financial services, said today that it has secured $150 million in Series C investment, bringing its total valuation to $1 billion. Tiger Global Management led the investment, with Accel, Amasia, and Goat Capital, the venture company co-founded by former Y Combinator partner Justin Kan, also participating (in 2015, Xendit became the first Indonesian startup to participate in the accelerator program).

Xendit’s $64.6 million Series B, announced barely six months ago, was led by Accel. This latest round takes the company’s total financing to $238 million. Moses Lo, the business’s CEO, and Tessa Wijaya, the company’s COO, launched the company in 2015.

Xendit entered into the Philippines at the end of last year, claiming to be one of the country’s largest payment providers. It announced a strategic investment in Dragonpay, a heritage online payments network, in July.

Wijaya told TechCrunch that Xendit chose to raise again to fund its development into other nations. “For this new fundraising, our primary goal is to further regionalize and expand our product portfolio in places where we are or will expand.” In addition, the firm intends to provide value-added services.

Xendit has seen a more than 200 percent rise in total payments volume year over year, with a total payment volume (TPV) of $9 billion processed every year, according to Wijaya.

Many of Xendit’s clients were in the tourism sector prior to COVID-19, which was badly impacted by the epidemic. However, it has subsequently broadened its reach.

“One big segment are SMEs. By August, there were 10,000 SME sign-ups on our platform alone. The other one is expanding out to fintech companies — for example, there’s been a big uptick in Indonesia, especially accounting platforms. We’ve also expanded to traditional enterprises, like telecom companies, who focused on having retail outlets in shopping malls. Suddenly the malls are closed, so we’ve been able to sign some of the bigger retail outlet groups in the market as well.”

The company’s clients range in size from SMEs to some of the region’s largest tech players, including Traveloka, Wise, Wish and Grab. Digital payments in most Southeast Asian markets are extremely fragmented, with consumers using everything from digital wallets, buy now, pay later services and virtual accounts to traditional debit and credit cards.

Xendit’s solutions let businesses accept payments from many of these methods through three integration options. These include live URLs that sellers can message to a customer for payment; web and mobile checkouts that work with e-commerce platform plug-ins; and APIs.

Though it is best known as a payment infrastructure provider, referring to itself as “a Stripe alternative build for Indonesia and Southeast Asia” on its website, Xendit is also working on other services. “In Southeast Asia, you can’t just focus on one thing, you can’t just focus on payments,” said Wijaya. “You want to focus on being this platform for every merchant to get onboard, and to never leave whenever they transact digitally.”

Though it is best known as a payment infrastructure provider, referring to itself as “a Stripe alternative build for Indonesia and Southeast Asia” on its website, Xendit is also working on other services. “In Southeast Asia, you can’t just focus on one thing, you can’t just focus on payments,” said Wijaya. “You want to focus on being this platform for every merchant to get onboard, and to never leave whenever they transact digitally.”

For example, Xendit is experimenting with working capital loans for merchants, and also exploring credit card issuing with partners, since credit card penetration is still very low in Indonesia and the Philippines. “For merchants to come online, they don’t just need payments, they need to be able to do things like subscribe to Shopify or subscribe to Google Suite, to be able to support being digital-first.”

For example, Wijaya said disbursements, including marketplace refunds, were difficult in Indonesia, so Xendit focused on fixing that. In the Philippines, on the other hand, “the real problem was accepting money,” so Xendit developed direct debit with Grab.

Xendit’s expansion strategy into new markets, like Malaysia and Vietnam, will rely on solving problems that are unique to each market. All my best wishes to them.

Shishir Gupta, Founder and CEO, StartupLanes

Shishir Gupta, Founder and CEO, StartupLanes

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